Silver exchange-traded product
What is a silver exchange-traded product?
A silver exchange-traded product is a type of security that aims to track the price of silver. These include exchange-traded funds (ETFs), exchange-traded notes (ETNs) and closed-end funds (CEFs), which can be traded on major stock exchanges.
Where have you heard about silver exchange-traded products?
Most people will have heard of gold buillon and be familiar with other gold-exchange traded products which work in a similar way to silver exchange-traded products.
In 2011 investment in silver made news headlines as the commodity’s price reached a 30-year high before falling almost 35% in two weeks, adversely affecting investors around the world.
What you need to know about silver exchange-traded products.
Depending on the type of silver exchange-traded product you choose you may be investing in the physical commodity, speculating on its share price via derivatives or investing a futures contract that agrees to buy or sell it at a predetermined price and on a fixed date.
Silver tends to perform well during periods of quantitative easing, when interest rates are lowered and more money is in circulation. However, it can be a volatile investment due to its exposure to threats such as price risk and political risk.
Each silver exchange-traded product comes with a different level of risk, so it’s important to understand each structure fully before you invest.
Find out more about silver exchange-traded products.
Learn more about the different types of silver exchange-traded products available, including exchange-traded funds, exchange-traded notes and closed-end funds (CEFs), and understand how commodity risk could impact your investment.